v3.24.2
Debt (Tables)
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Summary of the mortgage notes payable, unsecured term loans and credit facility
The following table summarizes the Company’s outstanding indebtedness, including borrowings under the Company’s unsecured credit facility, unsecured term loans, unsecured notes, and mortgage notes as of June 30, 2024 and December 31, 2023.

Indebtedness (dollars in thousands)June 30, 2024December 31, 2023
Interest Rate(1)(2)
    Maturity Date
Prepayment Terms(3) 
Unsecured credit facility:
Unsecured Credit Facility(4)
$127,000 $402,000 Term SOFR + 0.875%October 23, 2026i
Total unsecured credit facility127,000 402,000    
Unsecured term loans:    
Unsecured Term Loan G300,000 300,000 1.80 %February 5, 2026i
Unsecured Term Loan A150,000 150,000 2.16 %March 15, 2027i
Unsecured Term Loan H187,500 187,500 3.35 %January 25, 2028i
Unsecured Term Loan I187,500 187,500 3.51 %January 25, 2028i
Unsecured Term Loan F(5)
200,000 200,000 2.96 %March 23, 2029i
Total unsecured term loans1,025,000 1,025,000 
Total unamortized deferred financing fees and debt issuance costs(3,825)(3,227)
Total carrying value unsecured term loans, net1,021,175 1,021,773    
Unsecured notes:    
Series A Unsecured Notes50,000 50,000 4.98 %October 1, 2024ii
Series D Unsecured Notes100,000 100,000 4.32 %February 20, 2025ii
Series G Unsecured Notes75,000 75,000 4.10 %June 13, 2025ii
Series B Unsecured Notes50,000 50,000 4.98 %July 1, 2026ii
Series C Unsecured Notes80,000 80,000 4.42 %December 30, 2026ii
Series E Unsecured Notes20,000 20,000 4.42 %February 20, 2027ii
Series H Unsecured Notes100,000 100,000 4.27 %June 13, 2028ii
Series L Unsecured Notes175,000 — 6.05 %May 28, 2029ii
Series M Unsecured Notes125,000 — 6.17 %May 28, 2031ii
Series I Unsecured Notes275,000 275,000 2.80 %September 29, 2031ii
Series K Unsecured Notes400,000 400,000 4.12 %June 28, 2032ii
Series J Unsecured Notes50,000 50,000 2.95 %September 28, 2033ii
Series N Unsecured Notes150,000 — 6.30 %May 28, 2034ii
Total unsecured notes1,650,000 1,200,000 

Total unamortized deferred financing fees and debt issuance costs(6,462)(4,128)

Total carrying value unsecured notes, net1,643,538 1,195,872  

  

Mortgage notes (secured debt):  

  
United of Omaha Life Insurance Company4,430 4,537 3.71 %October 1, 2039ii
Total mortgage notes 4,430 4,537  
Net unamortized fair market value discount(131)(136) 
Total carrying value mortgage notes, net4,299 4,401  
Total / weighted average interest rate(6)
$2,796,012 $2,624,046 3.92 %
(1)Interest rate as of June 30, 2024. At June 30, 2024, the one-month Term Secured Overnight Financing Rate (“Term SOFR”) was 5.33717%. The current interest rate is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums or discounts. The spread over the applicable rate for the Company’s unsecured credit facility and unsecured term loans is based on the Company’s debt rating and leverage ratio, as defined in the respective loan agreements.
(2)The unsecured credit facility has a stated interest rate of one-month Term SOFR plus a 0.10% adjustment and a spread of 0.775%. The unsecured term loans have a stated interest rate of one-month Term SOFR plus a 0.10% adjustment and a spread of 0.85%. As of June 30, 2024, one-month Term SOFR for the Unsecured Term Loans A, F, G, H, and I was swapped to a fixed rate of 1.31%, 2.11%, 0.95%, 2.50%, and 2.66%, respectively (which includes the 0.10% adjustment). The Unsecured Term Loan F provides for the election of Daily Simple Secured Overnight Financing Rate (“Daily SOFR”), and effective January 15, 2025, Daily SOFR will be swapped to a fixed rate of 3.98%.
(3)Prepayment terms consist of (i) pre-payable with no penalty; and (ii) pre-payable with penalty.
(4)The capacity of the unsecured credit facility is $1.0 billion. Deferred financing fees and debt issuance costs, net of accumulated amortization related to the unsecured credit facility of approximately $2.4 million and $3.3 million are included in prepaid expenses and other assets on the accompanying Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023, respectively. The initial maturity date is October 24, 2025, or such later date which may be extended pursuant to two six-month extension options exercisable by the Company in its discretion upon advance written notice. Exercise of each six-month option is subject to the following conditions: (i) absence of a default immediately before the extension and immediately after giving effect to the extension; (ii) accuracy of representations and warranties as of the extension date (both immediately before and after the extension), as if
made on the extension date; and (iii) payment of a fee. Neither extension option is subject to lender consent, assuming proper notice and satisfaction of the conditions. The Company is required to pay a facility fee on the aggregate commitment amount (currently $1.0 billion) at a rate per annum of 0.1% to 0.3%, depending on the Company’s debt rating, as defined in the credit agreement. The facility fee is due and payable quarterly.
(5)The initial maturity date is March 25, 2027, or such later date which may be extended pursuant to two one-year extension options exercisable by the Company in its discretion upon advance written notice. Exercise of each one-year option is subject to the following conditions: (i) absence of a default immediately before the extension and immediately after giving effect to the extension; (ii) accuracy of representations and warranties as of the extension date (both immediately before and after the extension), as if made on the extension date; and (iii) payment of a fee. Neither extension option is subject to lender consent, assuming proper notice and satisfaction of the conditions.
(6)The weighted average interest rate was calculated using the fixed interest rate swapped on the notional amount of $1,025.0 million of debt and is not adjusted to include the amortization of deferred financing fees or debt issuance costs incurred in obtaining debt or any unamortized fair market value premiums or discounts.
Interest Income and Interest Expense Disclosure [Table Text Block]
The following table summarizes the costs included in interest expense related to the Company’s debt arrangements on the accompanying Consolidated Statement of Operations for the three and six months ended June 30, 2024 and 2023.

Three months ended June 30,Six months ended June 30,
Costs Included in Interest Expense (in thousands)2024202320242023
Amortization of deferred financing fees and debt issuance costs and fair market value discounts$1,052 $972 $2,036 $1,948 
Facility, unused, and other fees$439 $437 $878 $872 
Schedule of aggregate carrying value of the debt and the corresponding estimate of fair value
The following table summarizes the aggregate principal amount outstanding under the Company’s debt arrangements and the corresponding estimate of fair value as of June 30, 2024 and December 31, 2023.

 June 30, 2024December 31, 2023
Indebtedness (in thousands)Principal OutstandingFair ValuePrincipal OutstandingFair Value
Unsecured credit facility$127,000 $127,000 $402,000 $402,000 
Unsecured term loans1,025,000 1,025,000 1,025,000 1,025,000 
Unsecured notes1,650,000 1,524,610 1,200,000 1,074,003 
Mortgage notes4,430 3,290 4,537 3,535 
Total principal amount2,806,430 $2,679,900 2,631,537 $2,504,538 
Net unamortized fair market value discount(131)(136)
Total unamortized deferred financing fees and debt issuance costs (10,287)(7,355)
Total carrying value$2,796,012 $2,624,046